Seabridge Gold Inc. Announces Preliminary Feasibility Study for KSM Project in Northern British Columbia, Canada

Seabridge Gold Inc. has announced that it has filed a National Instrument 43-101 compliant Preliminary Feasibility Study (PFS) for its 100% owned KSM project in northern British Columbia, Canada. The study was prepared by Wardrop, a Tetra Tech Company, and identifies two different scenarios for expanding throughput, which would have a substantial positive impact on project economics. The KSM project is one of the world's largest undeveloped gold/copper projects, with proven and probable reserves of 43.9 million ounces of gold and 10.2 billion pounds of copper.

Key Takeaways:

• The PFS for the KSM project envisions an open-pit mining operation at 120,000 metric tonnes per day (tpd) of ore fed to a flotation mill, producing a combined gold/copper/silver concentrate for transport by truck to the nearby deep-water sea port at Stewart, B.C.
• The PFS identifies two alternative production scenarios: the Expanded Throughput Scenario, which involves increasing the throughput rate by 50% to 180,000 tpd commencing in Year 9; and the Incremental Throughput Scenario, which involves a 15% increase in throughput starting in Year 4 using existing plant equipment.
• The Expanded Throughput Scenario would require additional capital of US$982 million, expended during Years 7 and 8, and would result in a substantial positive impact on project economics, according to preliminary estimates.
• The Incremental Throughput Scenario would require additional capital of US$19 million in Year 3 to prepare the plant for the additional throughput, and would also result in a positive impact on project economics, according to preliminary estimates.
• The KSM project has proven and probable reserves of 43.9 million ounces of gold and 10.2 billion pounds of copper, making it one of the world's largest undeveloped gold/copper projects.
• Seabridge Gold President and CEO Rudi Fronk stated that there is a major opportunity to increase KSM's Net Present Value and Internal Rate of Return by expanding the rate of production after start-up.

Statistics:

• The KSM project has a planned throughput of 120,000 tpd, with an option to increase this to 180,000 tpd in the Expanded Throughput Scenario and 138,000 tpd in the Incremental Throughput Scenario.
• The PFS estimates that the Expanded Throughput Scenario would result in a Net Present Value (NPV) of US$6.4 billion and an Internal Rate of Return (IRR) of 24.1% at a gold price of US$1,200/oz.
• The PFS estimates that the Incremental Throughput Scenario would result in a NPV of US$5.2 billion and an IRR of 20.5% at a gold price of US$1,200/oz.
• The KSM project has a mine life of over 50 years, with the potential to produce 43.9 million ounces of gold and 10.2 billion pounds of copper.

Sources:

• Seabridge Gold Inc. press release dated June 20, 2011
• Wardrop, A Tetra Tech Company, preliminary feasibility study for the KSM project
• National Instrument 43-101, Canadian Securities Administrators
• Seabridge Gold Inc. annual information form dated December 31, 2010, filed with SEDAR in Canada

Note: This summary is based on the provided text and does not include any external information or supplementary analysis.